Goods and Services Tax

RECENT ADVANCE RULINGS IN GST (PART-11)

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 11-1-2019 – Advance rulings are important in any tax law as it provides a forum for clarification and possible interpretation of statutory provisions. Moreover, it conveys the legislative intention from the revenue s view point. Provisions of advance ruling are contained in section 95 to 106 of CGST Act, 2017 and State / UT GST enactment. Rules 103 to 107 of also provide for forms, manner, certification etc. The Authority for Advance Rulings (AAR) have been set up in all the states and we have now over 300 advance rulings on different issues already pronounced by various State Authorities. The appellate mechanism for filing appeals against AAR rulings is also in place and we have about twenty five such appellate orders confirming or modifying the AAR orders. One major issue presently being faced is about multiple authorities (equal to number of States), each pronouncing a ruling of its own even if the matter is covered

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ch falls under the definition of Government in terms of Section 2(53) of the Central Goods and Services Tax Act, 2017 wherein Government means the Central Government. The Authority for Advance Ruling ruled that the Serial No. B of Part 3 of GST Tariff-Services [Chapter 99] provides the list of nil rated/fully exempted services, on going through the said list, we find that Government/Authority providing services to other Government/Authority is exempted from GST and in view of the above, the services received by the applicant from IIT, Mumbai is exempted from GST. [In Re: IT Development Agency (ITDA) (2018) 6 TMI 1126; ]. Advance Ruling on composite / mixed supply of goods or services The applicant was engaged in business of fabrication of bus bodies/supply of bus bodies mounting/fitting on chassis supplied by various dealers/customers. The bus bodies were constructed and fitted under a written contract as per the specification provided. The applicant supplied bus bodies along with fitt

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ly the chassis. All inputs/materials required for fabrication of bus body, had to be used by the applicant from its own account. Under such situation it is the bus body which is being fabricated and also being mounted on the chassis provided by the customer. Therefore, it is not merely job-work. Rather it is supply of bus body and an activity of fitting/mounting of bus body on chassis is an ancillary activity to the principal activity of supply of bus-body. Hence, in terms of the clarification issued by the CBEC vide Circular No. 34/8/2018-GST, dated 3-3-2018, the impugned activity is a composite supply, with principal supply being supply of bus body. The Authority for Advance Ruling ruled that the activity of fabrication and fitting and mounting of bus bodies on the chassis supplied by the other party is a composite supply with supply of goods, i.e., bus bodies, being principal supply and same is covered under HSN Code 8707. [In Paras Motor Industries (2018) 7 TMI 1422; ]. Advance rul

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any treatment or process by a person on goods belonging to another registered taxable person; that the person who is treating or processing the goods belonging to other person is called 'job worker' and the person to whom the goods belong is called 'principal'. Further, the computation of Job Work Charges has been described at clause 6 of the agreement entered into between the assesee and M/s. Essar. The job work charges agreed by the assessee and M/s. Essar is the sole consideration payable by M/s. Essar to the applicant for the agreed activity to be carried out by the applicant. Thus, the Authority for Advance Ruling ruled that the activity undertaken by the assessee falls under the Job Work as defined under Section 2(68) of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017. [In Re: Inox Air Products (P.) Ltd. 2018 (6) TMI 518 – AUTHORITY FOR ADVANCE RULINGS, GUJARAT ; ]. Advance ruling on supply of food articles and rate of

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